Hong Kong’s OneDegree Inks Deal with Reinsurer Munich Re to Launch Digital Asset Insurance

April 11, 2022
Hong Kong’s OneDegree Inks Deal with Reinsurer Munich Re to Launch Digital Asset Insurance
Currently, only 1.5% of assets held by global exchanges and custodians are insured.

As crypto’s market cap pushes past $2 trillion and makes its way onto the balance sheet of many institutional investors and corporations, Hong Kong insurer OneDegree has announced a deal with Munich Re, one of the world’s largest reinsurers, to offer a new digital asset insurance product.

  • OneInfinity, the digital asset insurance product, is targeted toward digital asset trading platforms, custodians, asset managers, and technology providers.
  • Munich Re will provide reinsurance, described as “insurance on insurance companies,” that ensures an insurance company remains solvent even in the face of large payouts.
  • Having insurance backed by reinsurance is the norm for major infrastructure providers of any asset class, but takes a particularly unique twist with crypto given the intensity of cyberattacks.
  • OneDegree runs “risk-based analysis”, explained Becky Tam, the firm’s General Manager of digital assets, that covers everything from cyber security, and operations, to personnel management.
  • “It’s just like how if you are a heavy smoker and drinker you will struggle to buy medical insurance,” she said. “Not everyone that comes to us can get insurance.”
  • The company does not yet insure DeFi projects, but hopes to be able to soon after it studies the market more.